MILFAM and Kellogg Form Activist Group Controlling 48.5% of Scully Royalty, Plan Board Overhaul
SRL sits 21% above its 52-week low of $4.21.
Summary
MILFAM and the Kellogg family disclosed a new activist group holding 48.5% of Scully Royalty, with plans to replace the board and management, escalating a long-running control battle.
Key Events · Ownership and Investor Activity · SRL
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Activist Group Formed with 48.5% Stake
MILFAM-affiliated entities (13.0%) and Kellogg Parties (35.5%) formed a group under Rule 13d-5, collectively holding 7,385,962 shares, or 48.5% of outstanding common shares based on 15,226,351 shares outstanding as of November 24, 2025.
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Plan to Replace Board and Management
The group intends to nominate MILFAM's director candidates at the next annual meeting or a requisitioned extraordinary general meeting, vote together against current directors, and replace current management, with the possible exception of director Samuel Morrow.
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Ongoing Litigation Over Group Allegations
Scully Royalty filed a complaint on July 15, 2026 in U.S. District Court alleging the group was formed earlier without proper disclosure, which the reporting persons deny and intend to vigorously defend.
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Trustee Change Adds New Reporting Person
Effective April 4, 2026, MFTC, LLC replaced Neil Subin as trustee of two trusts holding 353,469 shares combined, and is now a reporting person in the group.
Analysis · SRL · Energy & Transportation
A bloc controlling nearly half of Scully Royalty's outstanding shares has emerged as Neil Subin's MILFAM-affiliated entities and the Kellogg family's investment vehicles join forces. Their explicit goal: replace the current board with their own nominees and oust management, with the possible exception of one director. This move marks a direct escalation of a months-long proxy fight that has already triggered litigation in the Cayman Islands and a new lawsuit filed by the company in Florida. With a combined 48.5% stake, the group wields significant leverage to force a board change—either at the next annual meeting or via a requisitioned special meeting. The filing also reveals that the company sued the group members on July 15, alleging they had formed an undisclosed group earlier, a claim the activists deny. The outcome of this power struggle will determine control of the company's royalty assets and strategic direction.
At the time of this filing, SRL was trading at $5.08 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $77.3M. The 52-week trading range was $4.21 to $10.39. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.